Vol. 4 No. 1 (2024): Issue 4
Articles

The Influence of Corporate Debt Maturity Structure on Corporate Growth: evidence in U.S. Stock Market

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  • Yingda Tang,
  • Kaixian Xu
Yingda Tang
Anderson School of Management, University of California
Kaixian Xu
Risk & Quant Analytics, BlackRock

Published 2024-12-10

Keywords

  • Corporate debt maturity structure,
  • Corporate growth,
  • Corporate innovation,
  • Firm reputation,
  • Average recovery period

How to Cite

Tang, Y., & Xu, K. (2024). The Influence of Corporate Debt Maturity Structure on Corporate Growth: evidence in U.S. Stock Market. Economic and Financial Research Letters, 4(1). Retrieved from https://ojs.mri-pub.com/index.php/EFRL/article/view/30

Abstract

This study aims to investigate the impact of debt maturity structure on corporate growth in U.S. firm. Using an unbalanced panel dataset of 2,774 firms from 2013 to 2022, this study utilizes a two-way fixed effects regression model. The findings of this study uncover the positive effects of long-term debt maturity on corporate growth, suggesting that firms engaged in longer debt maturities invest in projects with substantial growth potential. These results remain robust with an alternative explained variable approach. Additionally, heterogeneity analysis results show that firms with high reputations, strong innovation, and shorter debt recovery periods are more prone to the effects of long-term debt maturity on corporate growth. These findings lead managers and policymakers to leverage long-term debt in debt structure to support investments in projects with high growth potential.

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